edumas2
Short

$PLCE Solo space trip: is the end finally in sight?

NASDAQ:PLCE   CHILDREN'S PLACE INC
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Interesting to see the contrast yesterday between various retailers: $M, $KSS, $JWN and others were hammered pretty good... and as a side note, I would let them bleed some more before jumping on them. if it is s.u.c.h. a deal Wall Street will back up the truck and you will notice it.

Of course if Icahn sends a Tweet next week to say that he bought a few million shares you could see a V-shape recovery... but also think that there is a good chance the stock will do like the insurer $AIZ recently, before Trumps election. A huge gap down... a few days of HOPIUM (bottoming)... then the final whack... ;-) The early bottom fisher got their own bottom handed to themselves on a Platinum plate. See if you can be patient and wait for a potential second drop ...

Back to $PLCE. Huge positive news yesterday saying that contrary to other retailers sales sale had been great in the first part of the 4th quarter... However, the stock dropped $9 since the news hit. It is right at support. Many traders were very anxious to see how the almighty $PLCE would fare against other retailers. The answer is out. At the same time the market is a discounting mechanism as well and many folks that enjoyed the recent rocket ride from $70 might soon consider protecting some of those profits especially if the stock cracks under $100. I am in with puts from $105. If you are a stock day trader, $PLCE is not a popular stock among the forums in the morning but it is a stock that can easily move $4-$5 very fast and I would not be surprised to see some action this week. Up to you but keeping this one on your short list could make you some money especially if the markets opens weak and/or there is a new wave of bad retails. Best of luck to all for the coming week.
Comment: $M, $KSS,$JCP, $JWN are still struggling. Brick and mortar is not the flavor of the day right not when it comes to retail big money is dumping those stocks with a passion. Does not mean that those are not great companies but when the Street dumps, there is often first pullback to suck some bottom feeders/value guys. Then there is often a second and even a third flush to really spook the last shareholders.

This is why mentioned the chart of the insurer $AIZ above as it does illustrate this scenario. All it needed was a big catalyst like Trump getting elected and it flew back to the top. It got crushed because of some hurricane in the States.

Back to PLCE. Unfortunately, PLCE was the toughest stock of the retail bunch so it has not followed my game plan to a "T" which in the sense that it did not real "crack" yet. My $105 puts are doing OK for now. I expected retail to crack but I am not surprised that much that $PLCE did not move a whole lot as the company has great numbers and it seems that some holders are in no hurry to cash in their profits. However, it stuff hits the fan even more in retail, $PLCE will have to drop some more as not everyone is a multi-year holder.

The VPOC and a Key Option Level (in blue) are pretty much the support and resistance in the last 18 trading days.
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